PNC Financial Services Group Inc., the sixth-largest U.S. bank by deposits, will pay $3.62 billion in cash and stock for Royal Bank of Canada's (Raleigh, N.C.) U.S. retail banking unit and credit-card assets.
The acquisition will help expand PNC’s retail business in the Southeast beyond a foothold in Florida. The RBC Bank unit operates more than 420 branches in six states across the region. “The addition of RBC Bank provides PNC a great opportunity to enter attractive Southeast markets in a way that will create value for our shareholders,” PNC ceo Jim Rohr said in the statement.
PNC has retail operations in 15 states and Washington, D.C., including more than 2500 branches. The firm acquired National City Corp. in 2009 for about $3.9 billion in stock.
RBC Bank entered the U.S. more than 10 years ago with a $2.16 billion takeover of Centura Banks, reports the San Francisco Chronicle.